How Does Seasonality Create Fluctuations in a Firm's Net Income

question 68

Multiple Choice

How does seasonality create fluctuations in a firm's net income over a year?

• A)Cost of goods sold will rise and fall along with sales,while administrative and other costs will remain relatively steady.
• B)Cost of goods sold will rise when sales fall,and vice versa,while administrative and other costs will remain relatively steady.
• C)Cost of goods sold,along with administrative and other costs,will rise when sales fall,and vice versa.
• D)Cost of goods sold,along with administrative and other costs,will rise and fall along with sales.
• E)Cost of goods sold,along with administrative and other costs,will remain relatively steady.

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Definitions:

Preservation

The act of maintaining something in its original or existing state to prolong its life or prevent decay.

Restoration

The process of returning an object, building, or area to its original condition or to a state similar to its original condition.

Environmental Marketing

Marketing efforts that highlight the environmentally friendly attributes of a product or company to appeal to eco-conscious consumers.

Substantive Changes

Significant amendments or transformations within an organization, policy, or system that fundamentally alter the existing structure or operations.